Tuesday, December 10, 2013

Eviction and Bankruptcy, Part 2

Previously, we spoke about the limited effect of a bankruptcy if a landlord has obtained a judgment in Bucks County.

But, there are potential fixes.  The Bucks County renter can keep the automatic stay in effect for 30 days (meaning -- not get evicted) IF, pursuant to 11 U.S.C. 362(l)(1), the debtor files with the bankruptcy petition and serves on the landlord a sworn certification under non-bankruptcy law that the debtor is permitted to cure the default that gave rise to the eviction AND by depositing with the clerk of the bankruptcy court a month of rent.

If, during the 30 day period, the debtor cures the entire default, then the automatic stay will be permanently reinstated unless the landlord objects.  If the landlord objects, a hearing will be held on the reinstatement of the stay within 10 days.

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